Subject
Outlook for the civil aerospace industry.
Significance
Following the visit of President Hassan Rouhani to Europe, Iran is set to buy more than 100 airliners from Airbus over the next five years. The return of post-sanctions Iran as a buyer of commercial aircraft to re-equip its fleet gives both Airbus and Boeing hopes of a renewed surge in orders to fill any slowdown in the civil aerospace market caused by weak global growth.
Impacts
Iran may order up to 500 aircraft in 2016-21, worth 50 billion dollars overall.
Cheap oil will lead some airlines to delay acquiring more fuel-efficient aircraft, affecting the global supply chain.
Aircraft-, systems- and enginemakers will look forward to strong revenues in coming years.